Ethereum News Today: Ethereum Surges 50% in Two Months as Bitcoin Dominance Drops to 61.6%

Ethereum, the leading smart contract platform, has experienced a significant price surge, climbing from $2,780 to $3,500 in July 2025. This notable gain reflects a broader market rally, with the cryptocurrency gaining nearly 50% in the last two months. The momentum has been driven by various factors, including increased staking activity and a general bullish sentiment in the crypto market. The ETH/BTC pair has also surged past a key long-term moving average, a milestone not seen in a year, further underscoring Ethereum's strength relative to Bitcoin.

The recent surge in Ethereum's price has been accompanied by a decrease in Bitcoin's dominance, which has dropped to 61.6%. This shift in market dynamics has been driven by various factors, including increased staking activity and a general bullish sentiment in the crypto market. The altcoin season index, which signals reduced Bitcoin dominance, has been above 25, indicating a recovery led by Ethereum since July. This shift in market dynamics has been particularly evident as Bitcoin's dominance has dropped to 61.6%, its lowest level since April. Ethereum's price has surged to $3,675, marking a six-month high and outpacing several competing networks.

Ethereum's growth impacts related sectors and assets, driving speculative activity and capital flows toward smart contract platforms like Solana and Polygon. This reflects broader market confidence in altcoin cycles, with institutional interest in ETH allocations rising. The decrease in Bitcoin dominance reaffirms Ethereum's leading role in altcoin appreciation. Institutional and on-chain metrics show stabilizing conditions, paving the way for further potential gains across the cryptocurrency market landscape.

Ethereum's recent gains amid Bitcoin's declining dominance suggest potential for sustained price rallies if patterns continue. Insights indicate a robust altcoin season, likely driven by increased staking, on-chain activity, and institutional adoption. Successful resolution implies higher prospects for Ethereum and associated platforms. Market participants anticipate strong shifts, which, supported by historical data, encourage bullish market sentiments and speculative inflows into the larger altcoin space.

Ethereum's price rally has been characterized by significant volatility, with swings from around $2,110 to $2,870 over the past period. This volatility reflects active market moves and the dynamic nature of the cryptocurrency. Despite a slight dip in the half-year trend, the recent boost signifies short-term energy and robust activity on daily timeframes. Market participants have noted a mix of strong buying pressure and tempered longer-term outlook, highlighting the push-and-pull between buyers and sellers.

Ethereum's current trading range between $2,110 and $2,870 suggests that bulls dominate in the short term. However, caution is advised given the resistance zones that could trigger pullbacks. The nearest resistance is at about $3,254, with a secondary resistance near $4,014. Support levels of roughly $1,735 and a lower boundary around $976 offer potential entry zones if prices dip. Indicators like the RSI nearing 81 and a strong momentum reading suggest that buyers are active, despite signs of overbought conditions.

Significant market dynamics are reshaping cryptocurrency valuations as Bitcoin's market share decreases, leading to increased capital in Ethereum. Historical data suggests such movements often precede "altcoin seasons," boosting large-cap altcoins. Former BitMEX CEO Arthur Hayes and analysts like Trader Koala comment on ETH's potential upside. According to the analyst's forecast, the discrepancy between Bitcoin and Ethereum won't last much longer, and there is a major mispricing between the two.